Which one of the following is NOT a legal reason to refuse a loan application?

The reason that is NOT a legal basis for refusing a loan application is marital status. Federal regulations and laws, including the Equal Credit Opportunity Act (ECOA), prohibit lenders from discriminating against applicants based on marital status. This means that a lender cannot refuse a loan solely because of someone's relationship status, whether they are single, married, divorced, or widowed.

In contrast, the other reasons listed—non-discriminatory reasons (which could relate to legitimate financial criteria), an incomplete application (which indicates that the lender lacks necessary information to process the loan), and unverifiable income (which could prevent the lender from assessing the applicant’s ability to repay)—are all valid reasons for denial. These aspects focus on the financial and documentation aspects of the loan application, ensuring that the lender is able to evaluate the risk associated with granting the loan.